The pre-salt layer and challenges to competitiveness in Brazil: Critical reflections on the local content policy in the oil and gas Sector

Abstract Brazil stands out globally for its success in Oil and Gas (O&G) exploration, and with the discovery of substantial reserves in its pre-salt layer, the country has a chance to join the select group of the world’s largest petroleum producers. However, this scenario poses challenges primarily related to the ability of domestic Brazilian suppliers to meet complex competitive demands. In this context, the Brazilian Government implemented the Local Content (LC) Policy, which aims to encourage competitive development through greater integration of the actors related to the O&G sector’s production chain. This article analyses the influence of the LC Policy on the behaviour of the main actors involved in the competitive development process of the domestic suppliers in the Campos Basin O&G cluster. To this end, strategic prospective analysis tools were used due to suitability to the context of uncertainty that characterizes Brazil’s O&G sector. This method made it possible to identify 10 ways in which the LC Policy influences the behaviour of the relevant actors. It is deemed that the identification and analysis of these factors can help in the decision-making process of the actors involved by stimulating the Brazilian O&G sector.